Dividend Discount Model Valuation Tool

Calculate the present value of a stock based on its annual dividend, growth rate, and discount rate. Ideal for dividend-focused investors.

Annual Dividend ($)

Dividend Growth Rate (%)

Discount Rate (%)

Tool Features

• Simple input for dividend, growth, and discount rates
• Instant present value calculation
• Useful for valuing dividend-paying stocks

User Guide

1. Enter the annual dividend per share.
2. Enter the expected annual dividend growth rate (%).
3. Enter the discount rate (%).
4. Click "Calculate Present Value" to see the result.

Calculation Formula

Present Value = Dividend / (Discount Rate - Growth Rate)

Typical Use Case

The Dividend Discount Model is used to estimate the fair value of a dividend-paying stock, helping investors decide if a stock is undervalued or overvalued.

Job Roles Benefited

• Financial Analyst
• Equity Research Analyst
• Portfolio Manager
• Dividend Investor